At this writing, interest rates have steadily dropped for nine weeks and economists are predicting mortgage rates to follow suit in 2024.  While today’s rates to borrow are already less than the historical mortgage cost, the low rates of the Pandemic are hard for potential borrowers to forget.  30 year mortgage loans peaked at 8.45% in 2023 and finished year year at 6.60 %  We will see at what point a rate decrease affects the mindset of consumers.  

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Conforming mortgage loan maximum amounts have recently increased to $766,500.  Two-thirds of mortgages are “conforming loans” which offer the most flexibility to a borrower in down payment, closing costs and credit score requirements.  

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“Rise of Forever Renters” recently published in the Wall Street Journal shows a change of mind set and an upward trend in the number of people who choose to rent long term versus purchasing a home.  Some points were: 

The number of people living in rental housing in the U.S. has increased with a 15% rise since 2007. 

New Trends include subdivisions of single-family homes built for rent offering the suburban lifestyle without the commitment of homeownership.  Build-to-rent communities are expanding with Houston being third in the nation offering this alternative and is expected to grow in the coming years.   

It was also noted that the median age of renters is increasing and that millennials are slower to transition to homeownership compared to previous generations.  

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I hope you are enjoying the real estate information, it is written with Bay Oaks Homeowners in mind.  Please contact me with your real estate questions and needs and visit my web site at BayOaksOnline.com   

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One last note- I have included virtual property tours and professional photography in my marketing plan since 2014.  Since that time my listing inventory has been viewed 1.5 million times online and on social media!  I believe that is a strong indicator of consumer interest in Bay Oaks, and I welcome it.  The gallery of sold properties is located at www.BayOaksOnline.com/sales  

Dan McCarver 

281.793.4545 c